Government to push for a consolidated local content legislation

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The government has announced that it will be shelving proposals to have local content inclusions into the energy and mining bill which are set to be debated in parliament by the end of the year.

This follows stakeholder conversation at the oil and energy services local content convection where both the cabinet secretary for energy and mining presented on the need to empower local companies participate in the rising extractive industry.

Speaking during the last day of the convection mining cabinet secretary Najib Balala said that his ministry was hoping that the mining bill would be debated before parliament by August this year.

“We have been taken round and round on this bill and now hope that coming August something will be done,” said Balala.

Local content has formed core discussions in the past week at the convection that saw participation from both public and private industry stakeholders.

Announcing the confirmation from the mining cabinet secretary energy committee member and the former energy minister Kiraitu Murungi told delegates that the government had agreed to pursue local content as a single legislation.

Other speakers at the three day long convection warned policy makers that the legislation which will be drafted should not endanger projects or escalate costs with skill training an important component for the legislation if local content is to take off.

“The terrain that we have discovered oil and gas will necessitate for local companies to team up with  local firms to familiarize themselves with the communities there particularly,” said energy cabinet secretary Davis Chirchir during the opening speech of the convection.

As part of ensuring Kenyans benefit from the industry benefits the government has already proposed that local residents who were to be compensated for way leaves as the crude pipeline construction takes off be given equity stake instead.

The government has said it will come up with a legislation on local content before August 2015.

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One thought on “Government to push for a consolidated local content legislation

  1. Reblogged this on arnomaly and commented:
    The Oil and Energy Services Local Content Convention has in its own unique way stimulated the discussion of local company participation in the upstream oil and gas industry in Kenya.

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